Nasdaq 100
: 2355.23
Short-Term Trend: weak uptrend
Outlook:
Three weeks ago Nasdaq 100 was trading at 2335 and I was bullish. I also pointed out that from a trading perspective it was difficult to find a low-risk entry point since the market was overextended on the upside after the big move higher in October. For the past 3 weeks this market has basically gone nowhere as it has traded mainly sideways (between 2290 and 2410). This sideways consolidation looks healthy and I expect another strong move higher later this months or in early December. A move abv 2400 will be a strong sign that this upmove is already under way. My 1st upside target is at 2460, then - at 2540/50.
On the downside, only sustained trading below 2290 negates, risks decline twd 2184...
Strategy: Longs can be favored on a pullback against the 2285 level.
S&P500:
S&P500: 1264.09
Short-Term Trend: uptrend
Outlook:
This market has become quite volatile for the past couple of weeks but overall the prices have held above the previous breakout level. The fact that the 1220/10 level remains intact and the prices are abv the rising 100-day and 21-day moving averages are quite positive signs. Therefore I expect a move higher twd the 1305 level. The question is what comes next. The wave count suggests a trend reversal while the technical picture in Nasdaq 100 calls for much longer bull phase. For now I can only say that if the prices move considerably abv the 1305 level, the odds will favor a prolonged move higher twd 1440/50 eventually.
Strategy: Longs favorable on a pullback against 1210 level.